London, UK – BHP Group announced on Wednesday the need for an extension to discussions with takeover target Anglo American as the deadline draws near. The Australian mining company presented proposed “socioeconomic measures” to address concerns surrounding its bid, indicating the necessity for further dialogue.

The proposed offer values Anglo American at £38.6 billion ($49.2 billion), with BHP expressing the need for more time to engage in discussions on their proposal. Both mining giants have until 5 p.m. London time on Wednesday to reach an agreement, following an extension from the previous deadline.

In response to BHP’s request for an extension, Anglo American stated that they will respond “in due course.” The market reaction saw Anglo American shares initially dropping 2.2% at the market open but later stabilizing to a 1.3% decrease, while BHP’s stock rose by 1.2%.

BHP Group’s significant takeover bid aims to establish a dominant presence in copper mining, leveraging the critical role of the base metal in the green energy shift. Despite multiple rejections from Anglo American, citing undervaluation and concerns over de-merging from South African entities, BHP continues its pursuit to create a formidable mining entity.

Overall, the ongoing discussions between BHP Group and Anglo American highlight the competitive landscape within the mining industry, as companies strive to position themselves strategically amidst evolving market dynamics. The outcome of these discussions will not only impact the involved parties but also have broader implications for the global mining sector.